Growth Ratio Summary

Growth Score : 4.00

Fusion Finance Ltd's growth ratios present a mixed picture. The company demonstrates significant growth in its earnings per share. However, it struggles with revenue and asset growth which are low. The operating profit growth rate is also a concern. Though EPS growth is good, company needs to focus on revenue and assets to improve overall financial health.

Financial Ratio Summary

Financial Score : 4.00

The financial ratios for Fusion Finance Ltd present a mixed outlook. The company reports high capital expenditure. It has low adjusted earnings per share, low book value per share, and no dividend per share. It has adequate cash EPS. Improving EPS and focusing on book value and dividend strategies and focusing on adjusted EPS would enhance its financial attractiveness to investors.

Profitability Ratio Summary

Profitability Score : 4.00

Fusion Finance Ltd's profitability ratios present a mixed performance. The company demonstrates high return on capital employed. However, it reports no gross profit margin, return on equity, operating margin, and net margin. ROA is negative. Improving overall profitability metrics and maintaining a focus on return on capital employed would enhance its financial attractiveness to investors.

Efficiency Ratio Summary

Efficiency Score : 4.67

Fusion Finance Ltd's efficiency ratios present a mixed picture. The company demonstrates very high efficiency in managing its inventory and receivables. However, it reports no fixed asset turnover or capital turnover. This is acceptable in the non-banking finance sector because fixed assets are not a major component. The overall high efficiency score suggests that the company is adept at managing its core operations, but further analysis is needed to understand the anomalies in asset turnover.

Coverage Ratio Summary

Coverage Score : 2.00

The coverage ratios for Fusion Finance Ltd raise concerns about its ability to meet its debt obligations and dividend payments. The interest coverage ratio is low, indicating a limited capacity to cover interest expenses. The equity dividend coverage ratio is also low, suggesting a poor ability to cover dividend payments. Improving these ratios is crucial for enhancing financial stability and reducing the risk of financial distress.

Solvency Ratio Summary

Solvency Score : 3.80

Fusion Finance's solvency ratios suggest a moderate level of debt reliance. While the company's debt-to-asset ratio is within an acceptable range, indicating that assets sufficiently cover debts, high debt-to-equity ratio signifies a substantial reliance on borrowing compared to equity. This creates financial risk because there is less equity available to offset losses. The company needs to carefully balance its debt and equity to ensure long-term financial health.

Liquidity Ratio Summary

Liquidity Score : 2.00

The liquidity position of Fusion Finance Ltd appears weak. Absence of current, quick and cash ratio indicates potential difficulties in meeting short-term obligations. This could hinder day-to-day operations and limit the company's flexibility in handling unforeseen expenses. The low operating cash flow ratio further exacerbates these concerns. While this might be typical in certain financial service models, the company needs to closely monitor its cash flow to avoid any immediate financial distress.